It's just meant to say "duck", as it watch out for all of the negative posts... but I guess this isn't the OT so you should be fine.

But really, saving is a mentality. You really have to pay yourself first and live by that philosophy, with paying all incurred debt being the number two concern. As I get older (mid 20's) I really do realise that there is always something to spend your money on weather it's fun or not but you have to balance the instant gratification of spending money now with the greater reward of retiring comfortably.

By far and away the easiest way I have found to save is to have my savings and expenses drafted out of my account at every pay period. This way, anything left is f*ck off money that I can do whatever I want with. Also, don't let your savings sit in a low interest account. Get it set up into a 401k, IRA, or taxable investment account managed by a professional.

The best thing saving buys you is peace of mind. I sleep great knowing that I'm doing the correct things to ensure my comfortable future. There is nothing worse that uncertainty.

I try to set part of my budget as "Misc./Unknown." But, I still end up spending as much or more than what comes in.

My household income is about 65K. Four kids and fiancee, with about 3K in fixed bills (rent, utilities, etc...).

I'm trying to build savings and pay down debt. Should I do one first, then the other? Honestly, I have no clue how to really do this.

As pathetic as this all seems, I'm just being honest about it. I'm stuck in a financial situation that I don't want to be in. I just want to cut down on monthly bills as much as possible, and get some money in savings.

Most of the part time FA's of the Money Board will tell you to save a cushion of cash that will allow you to live for 4-6 months if you lose your job. Step two would be to pay off any high interest debt (6% or above). After all high interest debt is paid, it is a must to start moving money every month into a retirement account. If you have a company sponsored 401(k) with matching, this is a great place. If you don't, then find a low cost IRA.

quote:It's just meant to say "duck", as it watch out for all of the negative posts... but I guess this isn't the OT so he should be fine.

Right, male mallard = greenhead.

I was already on guard. Thought you were coming with a sarcastic photo.

It's all good. I expected negativity, and it still may come. But, I'm not worried about people typing words on a forum against me. Just trying to solve a problem I have with the help of good folks like yourself and ZereauxSum.

Thanks for the tips. I can definitely take some of that advice. In the end, I just want for my family to be "comfortable." I have no interest in being rich. I just want to be able to fix the car if it breaks down, splurge on the kids once in a great while, take the lady somewhere nice on occasion.

quote:So, save first, then pay down debt. Would that suggest to pay absolute minimums monthly until I get the savings up?

I would do whatever would make me feel "comfortable" first. Make sure you have about $1,000 saved for just in case. For me, I would want the debt gone. Probably not the smartest thing, but it would make me sleep a whole lot better.

Sign up and use it. It has really helped me get into a saving mentality.

I would suggest builiding up 2-3 months net income in cash, then attacking high interest (credit card, etc.) debt. Once you get all of that done, save another 3 months worth and then start attacking the rest of your debt.

It's a tough process, but it's doable. Mint will make you realize where you are spending insane amounts of money. Once you know your problem, it's easier to attack it.

If you have credit cards with a balance that charges an interest rate, pay it off ASAP. This takes priority over savings. If something "comes up" you can always charge it when it happens, pay off the debt immediately.

If you have debt that isn't revolving, like a student loan, you have to be more judicious. But the only reason to carry credit card debt is if you have a special deal with < 3% APR.